You started to plan for your retirement 2 years ago by investing into a individual retirement account (IRA). You deposited $2,520 dollars over the two year period and your money grew to $2,850 over that same period. Determine, by what percent, did your money grow by for the two year period. Round your answer to the nearest percent. a. 1.13% c. 13% b. 1.3% d. 130%

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Mathematics

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5 March, 05:48

You started to plan for your retirement 2 years ago by investing into a individual retirement account (IRA). You deposited $2,520 dollars over the two year period and your money grew to $2,850 over that same period. Determine, by what percent, did your money grow by for the two year period. Round your answer to the nearest percent. a. 1.13% c. 13% b. 1.3% d. 130%

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Answers (2)

Know the Answer?

Bruce Avila · Answer 1

The answer is c. 13%, i just took the quiz

Cierra Middleton · Answer 2

Given:

initial amount deposited = $2,520

final amount acquired = $2,850

number of years = 2 years

Use the formula from economics,

F = P (1 + i) ^n

2,850 = 2520 (1 + i) ^ 2

solve for i

i = 6.3% per year